HM Revenue and Customs (HMRC) has urged families and carers across Scotland and the UK to check if they qualify for financial aid to help cover childcare costs over the summer.
People who are eligible can get as much as £2,000 per year for each child, or £4,000 if their child has a disability. This money, which can be claimed for children up to 11 years old (or 17 if they are disabled) can help pay for childcare such as holiday clubs, before and after school clubs, childminders, and nurseries.
As reported by the Daily Record, the UK Government will cover 20 per cent of childcare costs by paying money into Tax-Free Childcare accounts. For each £8 that is deposited into one of these accounts, eligible families will get an extra £2 free.
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According to HMRC, over 22,700 made use of Tax-Free Childcare in March this year, marking the highest number since the scheme was introduced in 2017. However, the UK Government department said that thousands others could be missing out on the money — with research estimating that as many as 1.3 million households could qualify.
Tax-Free Childcare accounts can be opened at any time, and can be used immediately. Additionally, cash can be deposited at any time to be used as needed, and unused funds can be withdrawn.
With the cost of living crisis continuing to worsen, and schools out for the summer, it is incredibly important that families are able to afford childcare costs. By saving money in this regard, it can then be spent on other essentials.
Parents and guardians have been urged to learn more about Tax-Free Childcare on the Childcare Choices website.
HMRC’s Director General for Customer Services Myrtle Lloyd commented: “Tax-Free Childcare can make a big difference to families, helping with the bills for things like holiday clubs, nurseries, childminders and after school clubs.”
HM Treasury’s Exchequer Secretary to the Treasury Helen Whately MP urged families to sign up and save on childcare costs. She stated: “Tax-Free Childcare helps families with the cost of childcare bills but we know that thousands of parents could be missing out, that is why I'm encouraging families to sign up now and save on childcare costs.
"There are lots of fantastic holiday clubs and childcare providers to help working parents during the summer holidays, so now is the time to take advantage of this support."
Tax-Free Childcare eligibility
You could be eligible for Tax-Free Childcare if you:
- Have a child or children aged up to 11. They stop being eligible on September 1 after their 11th birthday. If their child has a disability, they may get up to £4,000 a year until they are 17
- Earn, or expect to earn, at least the National Minimum Wage or Living Wage for 16 hours a week, on average
- Each earn under £100,000 per year
- Do not receive Tax Credits, Universal Credit or childcare vouchers
There is a full step-by-step guide to claiming Tax-Free Childcare on GOV.UK here.
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